A catalyst for injury management change
Published
Read time
Pay more for less, or less for more? A catalyst for change.
The impact of the increase in ACC levies
The ACC has announced a levy increase that means employers will pay on average nearly 15% more over the next three years, with some seeing increases up to 60%.
The announcement was not a surprise. Having not been permitted to increase its levies for the last 6 years – and with ever rising claim costs and the blow-out of long-term claims in the system – the inevitable outcome was an increase in levies and increased loadings on employers.
Many businesses and organisations face a sizeable increase in ACC levies, and there are additional impacts including:
- Experience rating penalties: Employers with higher claim rates and extended lost time will face steep penalties of up to 100% of their standard levy.
- Limited control: Businesses have little to no influence over ACC’s performance, leaving them vulnerable to its ever decreasing outcomes.
- Productivity losses: Rising claim durations in a tight labour market mean prolonged productivity disruptions.
A viable alternative
There is a highly viable alternative. The Accredited Employers Programme (AEP) makes it possible for large employers to have greater control over injury management and rehabilitation outcomes. Under the AEP, employers take on the responsibility for managing their own employees’ workplace injury claims. By self-managing claims, employers can reduce exposure to rising levies and penalties and enable faster rehabilitation and return-to-work outcomes to reduce productivity losses. Accredited Employers have more flexibility to design injury management strategies that align with their workforce, operational needs and their staff.
But the AEP, with its specific entry requirements and administrative criteria, can be daunting. Companies also rarely have the in-house capability to properly consider and optimise the benefits.
Unlocking value through a strategic approach
This is where Howden Care adds value. As a quality injury management provider, we help companies reduce the average cost of claims by taking a strategic approach.
We help businesses reduce the total cost of lost time from injury and illness. We allocate more case manager time to injured staff than any other provider, assigning an experienced case manager to every claim – allowing for proactive, tailored rehabilitation plans that accelerate outcomes, support the business and the staff member to overall reduce costs.
Our custom-built case management system and data analytics platform provide real-time access to actionable data. This enables employers to track performance, identify risks, and implement preventive measures to reduce injuries and future claims costs.
By leveraging clients’ internal capabilities and our expertise, we deliver meaningful, sustainable outcomes.
Our model has achieved a minimum 10% decrease in claims costs for our clients after only one year of service delivery.
So – pay more for less, or less for more? As levy increases loom and claim costs continue to rise, astute businesses partner with Howden Care to mitigate the financial and operational impact. See this looming ACC levy increase not as a financial shock, but as a catalyst to a better, more effective approach to injury management that benefits the company and the employee.